ALT-1 How to Determine the value of a used Car
The absolute true value of a car is the sum of money someone else is willing to pay for it. How you arrive at that figure is determined by many factors. The obvious of which are brand, model, age, condition and mileage. It may surprise you that many other factors have a direct bearing as to what the true value of your car really is.
Most people today will go on line and bring up either Kelly Blue Book, or the NADA Guide book. Both are good sources of information on blue book value. A good approach would to be considering an average between the results of both services.
The blue book used car price is only one part of the puzzle, many other factors will affect the actual true value of your car. If your aim is replace your current car, the decision to trade in the car is an option. True the dealer will give you near what is listed as Trade-In value, and that will be noticeably less then the value placed if you chose to sell the car yourself. The dealer must make a profit you know, this isn't always a bad thing.
The dealer is setting his price by the fact that he has customer traffic coming through his lot. He has personal on hand to clean, repair, and detail your trade-in relieving you of that chore. He is usually located in a prime traffic area, giving your car good exposure to people that are actually shopping for a car. He will probably arrange financing for whoever purchases your car as well. All these things he does, you possibly can't do at all, or they would take time and effort from your daily life.
If you are selling on your own, many other things beyond preparing the car for sale are involved. All reflecting what the true value is. Before you can declare what the true value is, you need to find a buyer.
Assume you live out in the country, 50 miles or more away from any sizable city. On a small country road, that sees maybe 10 cars a day go by in traffic. Putting your car at the end of your driveway with a For Sale sign in the window isn't likely to generate a sale anytime soon.
Again I say, your car is only worth what someone will pay for it. If no one sees your car a buyer is unlikely to fall out of the sky. Hence the value is very low.
Advertising, visible display, as well as having the car, and a salesperson available to show the car, all are needed to find you a buyer, and in effect raise the value of the car.
Maybe taking that lower Trade-In offer isn't such a bad deal. True value can only be decided when all factors included in actually making a sale are part of the equation. If your isolated, and unknown the value will be much less then if your highly visible, a popular brand and model, and have everything needed to facilitate a sale.
The next time you look to sell a used car, remember the blue book used car price is only part of the equation.
